The Dow Jones Industrial Average fell over 200 points Monday, as the price of Bitcoin surged back above $40,000. Tesla stock raced higher, while Dow Jones leader Apple is trying to retake a key level.
EV giant Tesla (TSLA) rallied over 2% Monday, as it fights to retake its long-term 200-day line.
Dow Jones Today
The Dow Jones Industrial Average dropped 0.6% early Monday, while the S&P 500 lost 0.25%. The tech-heavy Nasdaq composite rallied 0.3% in midday trade.
Stock Market Rally: S&P 500 Near Record Highs
The S&P 500 remains near last week’s record highs, while the Dow Jones Industrial Average looked to snap a two-day win streak Monday. Meanwhile, the tech-heavy Nasdaq continues to rebound from its 50-day moving average, and is trading above potential resistance around 14,000.
Friday’s Big Picture column commented, “The tech-heavy Nasdaq and small-cap Russell 2000 are on the verge of hitting new highs, just one week after IBD upgraded the market outlook to a confirmed uptrend. The Nasdaq closed at its highest price since April 29 as it capped a four-week win streak. It is moving above resistance around the 14,000 level, though it has yet to decisively clear that level.”
For more stock market commentary, check out IBD’s The Big Picture.
Bitcoin Price Retakes $40,000
The price of Bitcoin traded as high as $40,815 early Monday before paring some gains in morning trade. Bitcoin traded around $40,600, according to Coindesk, surging more than 12% over the last 24 hours.
The Grayscale Bitcoin Trust ETF (GBTC) jumped more than 9% in morning trade. The Bitcoin-tracking ETF remains more than 40% off its 52-week high.
Dow Jones Stocks: JPMorgan
Dow Jones financial leader JPMorgan is trading below a 161.79 buy point in a flat base, according to IBD MarketSmith chart analysis, following last week’s 3.7% descent.
Shares fell 0.5% Monday morning.
Stocks To Buy And Watch: Alphabet, Applied Materials, Avantor, MSCI
IBD Leaderboard stock Alphabet is trying to break out past a 2,431.48 buy point in a flat base. Shares rose 0.1% Monday morning and are right at the entry. Leaderboard noted the stock’s RS line is at new highs, which is a positive sign.
Alphabet was a featured stock in last week’s Stocks Near A Buy Zone column.
Chip giant Applied Materials is adding a handle to a cup base, moving the buy point from 146.10 to 142.22. Shares ended about 4% away from the new entry amid Monday’s 0.5% gain.
According to IBD Stock Checkup, AMAT stock boasts a strong 97 out of a perfect 99 IBD Composite Rating. The IBD Composite Rating easily identifies stocks with a blend of strong fundamental and technical characteristics.
Tesla stock rallied 1.6% Monday morning, looking to rebound from Friday’s slight loss.
The EV giant continues to battle for support around its long-term 200-day line after giving up that level last week. A new base could be forming, but the stock is far away from any new buy point.
On Jan. 25, Tesla stock hit a record high at 900.40, after climbing as much as 93% from a 466 buy point in a cup with handle.
Dow Jones Leaders: Apple, Microsoft
Among the top Dow Jones stocks, Apple gained 1% Monday, looking to add to Friday’s 1% climb. The stock continues to rebound from its long-term 200-day line, while battling to retake the 50-day line. The stock’s lagging RS line indicates significant stock market underperformance.
Apple stock is tracing a new flat base with a 137.17 buy point after triggering the 7%-8% loss-cutting sell rule from a 135.63 buy point in early May.
Be sure to follow Scott Lehtonen on Twitter at @IBD_SLehtonen for more on growth stocks and the Dow Jones Industrial Average.
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